Work in progress

The issue is to clarify accounting for the net proceeds from selling any items produced while bringing an item of property, plant and equipment (PPE).

The Interpretations Committee received a request to clarify the accounting for the net proceeds from selling any items produced while bringing an item of property, plant and equipment (PPE) to the location and condition necessary for it to be capable of operating in the manner intended by management. The submitter has asked whether the amount by which the net proceeds received exceed the costs of testing should be recognised in profit or loss or as a deduction from the cost of the PPE.

The Interpretations Committee decided to add this item to its agenda to analyse this issue further.